Hong Kong, August 31, 2005- PCCW Limited's key IT subsidiary, Unihub Limited, has signed a major contract with Dragonair, aimed at further elevating the airline's IT systems to support greater operational efficiency and heightened customer service, while achieving significant cost reductions.

The three-year agreement specifies Unihub as Dragonair's strategic IT partner, particularly in relation to the provision of professional services on systems integration, hardware and software support, upgrades and maintenance of Oracle E-Business Suite-related applications.

"We obviously wanted a solid company with which to partner on our IT initiatives, and from our experience with Unihub we know it is able to deliver," said Terry Lo, General Manager Information Management of Dragonair. "IT underpins and forms an essential part of the high-quality services we as an airline provide to our customers, both external and internal, and we are looking forward to continuing to work closely with Unihub on making new and exciting services available in the future."

George Fok, Managing Director of Unihub, said, "This significant contract follows a number of projects in which Unihub and Dragonair have worked as partners, permitting us to share and to realize the airline's vision of maximizing the performance of its IT applications as part of its plan to provide increasingly improved return-on-investment (ROI)."

"By fully understanding customer needs, and being a Certified Partner of Oracle in Hong Kong and China, Unihub is uniquely positioned to not only add, but create value for Dragonair and other customers, enabling management to base decisions on timely and accurate information in vital areas such as Financials, Human Resources, Supply Chain Control, Procurement, and Customer Relations."

Dragonair stated that, as airlines are facing fierce competition, intense margin pressure, and increasingly complex operations, effective use of the latest information technology and applications is helping it to proactively meet these business challenges.

Unihub has worked with Dragonair in implementing its iProcurement system, upgrading and supporting its Financials and Human Resources Management System, each of which are core modules of the Oracle E-Business Suite. These systems have streamlined Dragonair's operations by automating procurement process, enabling accurate financial analysis and reporting, and effectively managing workforce.

As a Certified Partner of Oracle, Unihub has considerable experience in managing large-scale and sophisticated Enterprise Resources Planning (ERP) applications, including the ERP systems used by its parent company, PCCW Limited. According to Gartner report, "the overall ERP market in Asia Pacific is expected to record a compound annual growth rate of 8 percent from 2003 through 2008, reaching US$542.5 million in 2008." Unihub is well-positioned to capture the growth of this market by providing professional implementation and support services.

Dragonair is a Hong Kong-based airline, operating a fleet of 12 A330-300s, six A321s and 11 320s, in addition to four Boeing 747-200/-300 freighters, one wet-leased A300B4 freighter and one wet-leased Boeing 747-400 freighter. The airline's passenger network covers 31 destinations across the Asia-Pacific region, including 22 destinations in China Mainland; while its cargo network connects the markets of Europe, the Middle East, the United States, Japan, Taiwan and China Mainland.

Unihub is the IT service arm of PCCW Limited. Leveraging on PCCW's telecom infrastructure and resources, it is the unique center for high quality talents and expertise to provide customers with strong resources across boundaries, a wealth of experience, rich solutions portfolio and powerful partnerships. Unihub offers system development and integration of industry solutions, IT infrastructure, system maintenance and outsourcing services with a key focus in the areas of Financial Services, Public Sector, Telecommunications and Enterprises.

About PCCW

PCCW Limited (SEHK: 0008, ADR-NYSE: PCW) is the leading communications provider in Hong Kong and one of Asia's leading IT&T players. Hong Kong's image as a center of technology excellence continues to be enhanced by PCCW's innovation, especially in new generation fixed-line telephony, broadband, IT, wireless and delivery of home entertainment. Internationally, PCCW provides cutting-edge technical services to network operators, and enables organizations to bring their business to Asia and take Asian business to the rest of the world. The Company's English name was changed in 2002 from "Pacific Century CyberWorks Limited" to "PCCW Limited".